GM says it's opening Cadillac plant in China

DETROIT (AP) -- General Motors Co. confirms that it's building a new Cadillac factory in China.

GM will start building the $1.3 billion plant next month in Shanghai's Jinqiao zone. It will produce 150,000 vehicles per year.

The auto maker recently received regulatory approval for the new plant.

GM currently makes just one Cadillac — the XTS sedan — in China. Production began in February at a plant in Shanghai.

The company won't say which models will be made at the new plant, but has said it plans to introduce one locally made Cadillac each year through 2016.

GM is trying to increase Cadillac sales in China, where the luxury market is dominated by European brands. Cadillac's China sales doubled in April to 4,000 vehicles, or around 1.5 percent of GM's total sales.